B-130024, DEC. 17, 1956

B-130024: Dec 17, 1956

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VETERANS ADMINISTRATION: REFERENCE IS MADE TO A LETTER DATED DECEMBER 7. THREE OTHER BIDS WERE RECEIVED WHICH RANGED IN PRICE FROM $0.56 TO $0.7910 PER POUND. IT IS REPORTED THAT AT THE OPENING OF THE BIDS IT WAS NOTED THAT THE BID OF ARMOUR AND COMPANY WAS CONSIDERABLY OUT OF LINE WITH THE OTHER BIDS ON THIS ITEM. THIS ALLEGATION OF ERROR WAS CONFIRMED BY LETTER OF NOVEMBER 20. IN WHICH THE COMPANY ALLEGED THAT ITS BID PRICE FOR THIS ITEM SHOULD HAVE BEEN $0.5970 PER POUND. THAT ITS ACTUAL COST WAS IN EXCESS OF $0.50. SINCE THE CONTRACTING OFFICER NOTED THAT THE BID OF ARMOUR AND COMPANY WAS OUT OF LINE WITH THE OTHER BIDS ON ITEM 22. SINCE THE ERROR WAS CONFIRMED AND EXPLAINED BY THE BIDDER PRIOR TO AWARD.

B-130024, DEC. 17, 1956

TO HONORABLE H. V. HIGLEY, ADMINISTRATOR, VETERANS ADMINISTRATION:

REFERENCE IS MADE TO A LETTER DATED DECEMBER 7, 1956, WITH ENCLOSURES, FROM THE DEPUTY ADMINISTRATOR, REQUESTING A DECISION AS TO WHETHER AN ALLEGED ERRONEOUS BID SUBMITTED BY ARMOUR AND COMPANY, 318 EAST MAIN STREET, LEXINGTON, KENTUCKY, IN RESPONSE TO INVITATION TO BID NO. 57-59, ISSUED BY THE VETERANS ADMINISTRATION HOSPITAL AT LEXINGTON, KENTUCKY, MAY BE WITHDRAWN.

THE RECORD SHOWS THAT BY THE CITED INVITATION TO BID DATED NOVEMBER 9, 1956, THE VETERANS ADMINISTRATION HOSPITAL AT LEXINGTON, KENTUCKY, REQUESTED BIDS FOR FURNISHING PACKING HOUSE AND DAIRY PRODUCTS FOR THE MONTH OF DECEMBER 1956. ITEM 22 OF THE INVITATION COVERED "HAM, UNCURED, SKINNED, BONED, ROLLED AND TIED * * *.' IN RESPONSE THERETO, ARMOUR AND COMPANY SUBMITTED A NET PRICE OF $0.3970 PER POUND. THREE OTHER BIDS WERE RECEIVED WHICH RANGED IN PRICE FROM $0.56 TO $0.7910 PER POUND.

IT IS REPORTED THAT AT THE OPENING OF THE BIDS IT WAS NOTED THAT THE BID OF ARMOUR AND COMPANY WAS CONSIDERABLY OUT OF LINE WITH THE OTHER BIDS ON THIS ITEM. THE CONTRACTING OFFICER CONTACTED ARMOUR AND COMPANY BY TELEPHONE TO VERIFY ITS BID AND THE COMPANY ALLEGED ERROR IN ITS BID IN THAT IT HAD BID A PRICE OF $0.3970 PER POUND IN LIEU OF AN INTENDED BID PRICE OF $0.5970 PER POUND. THIS ALLEGATION OF ERROR WAS CONFIRMED BY LETTER OF NOVEMBER 20, 1956, IN WHICH THE COMPANY ALLEGED THAT ITS BID PRICE FOR THIS ITEM SHOULD HAVE BEEN $0.5970 PER POUND, AND THAT ITS ACTUAL COST WAS IN EXCESS OF $0.50. IN A FURTHER LETTER OF NOVEMBER 29, 1956, THE COMPANY EXPLAINED THE ERROR AS ONE OF TRANSCRIPTION FROM WORK SHEETS TO THE BID FORM; BUT STATED THAT ITS WORK SHEETS HAD BEEN DESTROYED.

ON THE BASIS OF THE FACTS AND EVIDENCE OF RECORD, IT APPEARS TO BE REASONABLY ESTABLISHED THAT THE COMPANY MADE A BONA FIDE MISTAKE IN ITS BID AS ALLEGED. SINCE THE CONTRACTING OFFICER NOTED THAT THE BID OF ARMOUR AND COMPANY WAS OUT OF LINE WITH THE OTHER BIDS ON ITEM 22, AND SINCE THE ERROR WAS CONFIRMED AND EXPLAINED BY THE BIDDER PRIOR TO AWARD, THE BID OF ARMOUR AND COMPANY SHOULD BE DISREGARDED.

THE ENCLOSURES TO THE LETTER OF DECEMBER 7, 1956, ARE RETURNED HEREWITH.